NADA DPS Survey

[mbowers]

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Mike Bowers

[Chuck Hartle]

Talk about beating a dead horse! This survey really only proved that one large computer vendor did a terrible job. You get what you pay for, and you reap what you sow.

It is good to hear that the smaller DMS companies are starting to add the features to attract so many new clients. However, ADP and Reynolds and Reynolds have great features and are still the best alternative for larger dealers. The bigger you are the more problems you have. The smaller DMS companies have the time to give to their customers and you can see by this survey that they have loyalty with their customer base.

I still contend, however, that once you make a decision on a computer and invest the money in the product, that you have made a long term investment not in technology, but in your employees. Swapping DMS vendors is a tremendous burden for all dealership departments. We have seen a half dozen swaps over the past two years. And, in each instance, we have seen a dramatic drop in revenue for the first six months to a year before they rebound. Why? The learning curve. I can't begin to tell you how many emails I have received complaining that the new system doesn't do what the old system did; only to find out that it does do it only in a different program or format.

This survey, again with the exception of one vendor, proves that the bigger the company, the more issues that arise with their customers. When I look at parts operations and what manufacturers get the biggest complaints, (Ford, GM, and DaimlerChrysler), it only seems fit since they are the Big 3.

Chuck Hartle'

[BiG BOY]

Before I start, let me tell you that I am a Sales Rep for a big company. I wont tell you what company, only my experiences. It is a very big decision for a dealer to make, as to what system he /she wants in their store. The decision is also a very difficult one.

For the Dealer that doesnt believe that a system can have an impact on the bottom line, then the decision is easier. This type of dealer will almost always gravitate to the vendor that sells only on price. And this dealer will probably be content with the system, in fact he may be happy with the system, because very often his only contact with his vendor or system is when he strokes the check every month. The dealer may not see, because his people may be too afraid to tell him, that they really have a lot of pains with the tool that they have to work with. What this Dealer will never know is what he is missing, because he is not seeing the big picture.

For the Dealer that is interested in growing his business, increasing efficiencies, and setting himself up for the future, he will look at product and not so much price. Dont get me wrong, price is important. When you look at the product you will find that all vendors have systems that will do the basic things, some do them more efficient than others, with more integration, but you still end up with a financial statement at the end of the month. Here are the things that make the difference, it is the support, it is the consulting services, and it IS the Bells and Whistles. The Bells and Whistles are the things that make it possible for a Dealer to increase profits. And yes, each bell, and every whistle costs money. But I challenge you to look at each of these items as a separate business decision. Figure out for yourself how the Bell will impact profits, and weigh that against what it costs. If profits outweigh costs, you made a good business decision, and probably enhanced your dealerships image to your customer. Can you put a value on your image? Probably not, it is immeasurable, but very real, dont over look it. I am not going to get into what Bells and Whistles I am talking about (this is not a sales pitch). I ask you to go to the NADA convention in January, and figure it out for yourself.

A few thoughts to leave you with:
~ Dont trip over Dollars to pick up Nickels.
~ Think of how you look at the customer that comes in to your showroom and is focused solely on price. If you think the same way about purchasing a system, the thoughts you have about your price buyer probably apply to yourself as well.
~ Dont think of your system as just a number cruncher. It could be a real CRM tool. If you dont know what CRM is, FIND OUT. If you dont, youre probably still in the 20th century, and wont survive.
~ A lot of dealers look to cut expenses to survive, and the computer is the easiest for some. But remember, cutting expenses is the least effective way to
improve a business.
~ Be Happy